CANADA: Amendments to the TSX Rulebook

Tuesday September 20 2016

TMX Group have announced that in accordance with the Process for the Review and Approval of Rules and the Information Contained in Form 21-101F1 Toronto Stock Exchange (TSX) has adopted, and the Ontario Securities Commission (OSC) has approved, amendments to the TSX Rule Book to reflect enhancements to the Market on Close (MOC) facility operated by TSX. The Amendments are public interest amendments to the Rules and were published for public comment on June 30, 2016.

The Amendments are being made to reflect the following changes:

• A second MOC imbalance will be calculated and broadcast in the event of a delay to the closing call due to the invocation of the price movement extension (PME).
• Following the broadcast of the second MOC imbalance, MOC limit orders may be entered in the MOC book on the opposite side of the second MOC imbalance. MOC limit orders that are not included in the first MOC imbalance may be cancelled subject to the time constraints set by TSX.

The Amendments were developed in consultation with the MOC user community to address certain functionality deficiencies related to the PME. The Amendments are intended to improve the ability of participants to offset MOC imbalances during a PME session. This should, in turn, help reduce the price volatility of MOC securities in closing calls that are delayed due to a PME.

In addition, permitting participants to cancel MOC limit orders submitted during the PME will make the MOC facility functionality consistent as between the 3:40 to 4:00 p.m. time period and the PME session.

The Amendments will become effective on 21st November 2016.

Click on the link above for further details.